Cycle USA is in the business of making innertubes for bicycles. They manufacture both large and small innertubes. Both of the tubes use the same material but require different amounts of material. The material usage is as follows: Rubber Large 3 feet at $0.25 per foot Small 1.25 feet at $0.25 per foot 1 at $0.03 Connector 1 at $0.03 On June 1, Cycle USA purchased 25,000 feet of rubber for $6,875. During the month of June, Cycle USA used 14,500 feet of rubber to make 3,000 large tubes and 4,000 small tubes. A. Calculate the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? B. If Cycle USA bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors? C. How much did they pay per foot for the rubber if there was an unfavorable direct materials price variance of $125?

Cycle USA is in the business of making innertubes for bicycles. They manufacture both large and small innertubes. Both of the tubes use the same material but require different amounts of material. The material usage is as follows: Rubber Large 3 feet at $0.25 per foot Small 1.25 feet at $0.25 per foot 1 at $0.03 Connector 1 at $0.03 On June 1, Cycle USA purchased 25,000 feet of rubber for $6,875. During the month of June, Cycle USA used 14,500 feet of rubber to make 3,000 large tubes and 4,000 small tubes. A. Calculate the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? B. If Cycle USA bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors? C. How much did they pay per foot for the rubber if there was an unfavorable direct materials price variance of $125?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 2CMA

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Cycle USA is in the business of making innertubes for bicycles. They manufacture both large and small innertubes. Both of the tubes use the same material but require different amounts of material. The material usage is as follows: 　 Large Small Rubber 3 feet at $0.25 per foot 1.25 feet at $0.25 per foot Connector 1 at $0.03 1 at $0.03 On June 1, Cycle USA purchased 25,000 feet of rubber for $6,875. During the month of June, Cycle USA used 14,500 feet of rubber to make 3,000 large tubes and 4,000 small tubes. A. Calculate the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? Direct Materials Price Variance 　 Direct Material Quantity Variance 　 Total Direct Materials Cost Variance 　 B. If Cycle USA bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors? Direct Materials Price…
Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. Large Small rubber 3 feet at $0.25 per foot 1.25 feet at $0.25 per foot connector 1 at $0.03 1 at $0.03 At the beginning of the month, Ed Co. bought 25,000 feet of rubber for $6,875. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. Required: What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? If they bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors? If there was an unfavorable direct materials price variance of $125, how much did they pay per foot for the rubber?
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Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. Large Small Rubber 3 feet at $0.20 per foot 1.25 feet at $0.20 per foot Connector 1 at $0.02 1 at $0.02 At the beginning of the month, Ed Co. bought 25,000 feet of rubber for $7,250. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,600 feet of rubber. A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? Enter all amounts as positive numbers. If required round your answers to two decimal places. Direct materials price variance $fill in the blank 1 Direct materials quantity variance $fill in the blank 3 Total direct materials cost variance $fill in the blank 5 B. If they bought 9,000 connectors costing $190, what would the direct materials price variance be for the connectors? Round…
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